Illegal Internet Drug Dealer’s Mansion Up For Auction

Bidding starts at $1.5 million in an online auction next month for an Arlington home forfeited by a convicted Internet drug dealer.

As reported in the Dallas Morning News and the Associated Press, the massive mansion formerly owned by Rakesh Saran, a convicted Internet drug dealer is appraised at $3.7 million, was seized after Saran's 2005 arrest in an investigation of more than 20 illegal Internet pharmacies.

Saran in 2006 pleaded guilty to one count of conspiracy to commit health care fraud, two counts of mail fraud, one count of conspiracy to distribute controlled substances. He was sentenced to 12 years in prison and ordered to pay $68 million in restitution.

Going after the assets of the criminals who are poisoning populations with fraudulent, adulterated and counterfeit medications is a significant step forward in attracting the necessary publicity so that the average health care consumer understands the danger this crime is to them.

All members of the pharmaceutical supply chain need to deploy solutions and technologies to combat this clear and present danger to their business and consumers.

To read the entire Dallas Morning News article, visit: http://www.dallasnews.com/sharedcontent/APStories/stories/D9I92J2G1.html.

To learn more about pharmaceutical anti-counterfeiting technologies, visit: http://www.xstreamsystems.net/.

Canadian Man Pleads Guilty to Selling Counterfeit Cancer Drugs

Tuesday, Hazim Gaber, 22 of Edmonton, Canada, pleaded guilty to selling counterfeit cancer drugs over the internet. Gaber admitted selling what he falsely claimed was the experimental cancer drug sodium dichloroacetate, also known as DCA, to at least 65 victims in the United States, Canada, the United Kingdom, Belgium and the Netherlands between October and November 2007. According to the plea agreement, Gaber charged $23.68 for 10 grams of the purported DCA, $45.52 for 20 grams or $110.27 for 100 grams, plus shipping.

DCA is an experimental cancer drug not yet approved for use in the United States or Canada. DCA is an odorless, colorless, inexpensive, relatively non-toxic experimental cancer drug that is highly sought after by cancer patients. A doctor at the University of Alberta in Canada published a report in early 2007 summarizing the results of a study, which showed that DCA caused regression in several cancers, including lung cancer, breast cancer, and cancerous brain tumors.

Gaber sold the counterfeits through a website named DCAdvice.com, which falsely claimed that it was the only authorized representative to sell DCA and was affiliated with the University of Alberta. Further lab analysis determined that the substances sold contained starch, dextrin, dextrose or lactose, and contained no DCA.

Gaber faces a maximum prison sentence of 20 years on each of the five counts of wire fraud to which he pleaded guilty. Gaber also faces maximum fines of $250,000 per count. As part of the plea agreement, Gaber agreed to forfeit or cancel any website, domain name or Internet services account related to this fraud scheme.


XStream System applauds all the regulatory and enforcement agencies involved in the capture of this counterfeiter: Criminal Division’s Computer Crime, Intellectual Property Section, Assistant U.S. Attorney Peter Sexton of the U.S. Attorney’s Office for the District of Arizona. the Edmonton Police Service, the Alberta Justice Office of Special Prosecutions-Edmonton, the Competition Bureau of Canada, the U.S. Postal Inspection Service, the Federal Trade Commission and the Alberta Partnership Against Cross Border Fraud, The Criminal Division’s Office of International Affairs and the Phoenix FBI Cyber Squad.

To view the Dept of Justice Press Release visit: www.justice.gov.

To view information regarding counterfeit detection solutions visit: www.xstreamsystems.net.

Fake FDA Agents Pursue Consumers for Bogus Drugs

The FDA is warning the public about an international extortion scam by criminals posing as FDA special agents and “fining” consumers who purchased drug online or via telepharmacies. The FDA press release appears below:

FDA Warns Public of Continued Extortion Scam by FDA Impersonators

The U.S. Food and Drug Administration is warning the public about criminals posing as FDA special agents and other law enforcement personnel as part of an international extortion scam.

The criminals call the victims -- who in most cases previously purchased drugs over the Internet or via "telepharmacies" -- and identify themselves as FDA special agents or other law enforcement officials. The criminals inform the victims that purchasing drugs over the Internet or the telephone is illegal, and that law enforcement action will be pursued unless a fine or fee ranging from $100 to $250,000 is paid. Victims often also have fraudulent transactions placed against their credit cards.

The criminals always request the money be sent by wire transfer to a designated location, usually in the Dominican Republic. If victims refuse to send money, they are often threatened with a search of their property, arrest, deportation, physical harm, and or incarceration.

"Impersonating an FDA official is a violation of federal law," said Michael Chappell, the FDA's acting associate commissioner for regulatory affairs. "The public should note that no FDA official will ever contact a consumer by phone demanding money or any other form of payment.”

FDA special agents and other law enforcement officials are not authorized to impose or collect criminal fines. Only a court can take such action, with fines payable to the U.S. Treasury.

Anyone receiving a telephone call from a person purporting to be an FDA or other law enforcement official who is seeking money to settle a law enforcement action for the illegal purchase of drugs over the Internet should refuse the demand and call the FDA’s Office of Criminal Investigations Metro Washington Field Office at (800) 521-5783 to report the crime.

In addition to posing as FDA officials, criminals have posed as special agents of the DEA, FBI, U.S. Secret Service, U.S. Customs Service, as well as U.S. and Dominican prosecutors and judges. In response, the FDA, in conjunction with various federal, state, and local agencies, is actively pursing criminal charges.

The FDA also reminds consumers to use caution when purchasing prescription drugs over the telephone or the Internet. In addition to the increased risk of purchasing unsafe and ineffective drugs from Web sites operating outside the law, there is the danger that personal data can be compromised.

For more on FDA’s concerns about unlawful drug sales on the Internet, see http://www.fda.gov/ForConsumers/ProtectYourself/default.htm.

LA Times: Growth of Counterfeit Drugs Sparks International Response

As reported in the November 21 addition of the Los Angeles Times, authorities in the U.S. and across the globe conduct raids this week to intercept fake medications. Highlights from the story appear below:

New York - In highly orchestrated raids around the world this week, Interpol officers in Europe, drug agents in the United States and task forces from Sweden to Singapore confiscated counterfeit prescription drugs in an attempt to stem a rapidly growing criminal business that preys on financially pressed consumers looking for bargains.

The operation, code-named Pangea, is an effort to fight back against fraudulent prescription drug businesses, which have become a $28-million industry in the United States alone.

The national crackdown uncovered nearly 800 packages of fake or suspicious prescription drugs, including Viagra, Vicodin, and Claritin, and shut down 68 rogue online pharmacies, authorities said. They said some counterfeit drugs may have as much as three times more of an active ingredient than is typically prescribed; others may be placebos. Drywall material, antifreeze and yellow highway paint have been found in counterfeit pills.

The operation is centered in a sprawling mail center at New York's Kennedy Airport where hundreds of packages of suspected fake medicines were dumped into orange bins, piled on skids and stacked high waiting to be examined by agents from numerous government agencies. Overseas, Interpol officers and task forces stormed suspected counterfeit drug warehouses and distribution centers.

Counterfeit drugs are the latest -- and potentially most dangerous -- front in the long-running battle against intellectual-property crimes. Law enforcement officials said consumers typically think of counterfeited products such as fake Louis Vuitton purses or Nike sneakers. Although shoes are the most common phony product, accounting for 38%, or $102 million, of counterfeit products seized by customs officials last year, pharmaceuticals are one of the fastest-growing categories.

In 2007, they made up about 6% of total seizures. Last year, they accounted for 10% to become the third-largest category, with an estimated market value of $28 million. Federal officials say that trend is particularly disturbing because of the health dangers that such drugs present.


Counterfeit drugs have a history as old as snake oil, and now the high cost of many prescription drugs has driven consumers to hunt for cheaper alternatives on the Internet. According to the National Assn. of Chain Drug Stores, a trade group, Americans spent $254 billion on prescription drugs last year, up 1.8% from 2007. The long-running recession has made such costs more difficult for many consumers to bear, experts said.

The National Assn. of Boards of Pharmacy maintains a list of roughly 4,000 online pharmacies it says are questionable.

In New York, federal agents spent the week at Kennedy Airport pulling suspicious packages from China, India, Peru, Pakistan, Brazil, Turkey, Taiwan and Russia, trying to spot distribution trends and gathering leads. The leads can take months or years to track down, but officials said they needed to start somewhere.

"For the criminals, at least, we're telling them that everybody's looking," said Richard Halverson, unit chief at the National Intellectual Property Rights Coordination Center.

To see the entire story that appeared in the Los Angeles Times, visit: http://www.latimes.com/business/la-fi-counterfeit21-2009nov21,0,274882.story

Fake Meds Lure 7 M Adults in UK - But it could cost them more than just a charge on their credit card!

Pfizer shocked the world early this year when they release anti-counterfeiting campaign in the theaters in the United Kingdom. They are now continuing this campaign for public awareness with posters and commercials on TV. Due to their graphic nature, the commercial was only shown after 11 p.m.

The main message is an elaboration of “Buyer Beware” – especially when it comes to online purchases of medications. In an age where consumers are buying more of their products online, they need to be cautious when it comes to medications.

New research indicating the scale of the counterfeit medicine culture was released last week as part of this hard-hitting campaign to educate the public of the risks involved in purchasing fake medicines from unregulated websites. The Get Real, Get A Prescription public awareness campaign is being launched in a partnership between Pfizer, the Medicines and Healthcare products Regulatory Agency (MHRA), the Royal Pharmaceutical Society of Great Britain (RPSGB), The Patients Association and HEART UK.

More than one in seven British Adults survey (15%) admitted to bypassing the healthcare system to get medication without a prescription. That would equate to around 7 million adults who are gambling with their lives. So why would consumers take this risk? - A majority (60%) of adults agree that they're more trusting of all purchases they make online today compared to five years ago. About one fifth stated they believe offering medications online at discounted pricing is a public service and about a third believe the medication to be true. But 78% of General Practitioners believe this practice puts their patient’s health and potentially their lives at risk, due to the prevalence of counterfeit drugs online.

David Pruce from the Royal Pharmaceutical Society of Great Britain said: "Pharmacists are very concerned about the increase in fake or counterfeit medicines. As expert professionals in medicines and medicines use, we know only too well that fake medication does not work and that it can cause harm. Stay safe by ensuring that you always get your prescriptions dispensed at a registered UK pharmacy. If you want to buy medicines online, always check that you are dealing with a genuine pharmacy. Don't go on face value - some of the illegal sites look very professional but supply dangerous fakes. Check our website for a list of sites that have been awarded the RPSGB's internet pharmacy logo so that you can be sure that you are dealing with a UK registered pharmacy supplying genuine medicines. This campaign is important. We want the UK to be the safest place to obtain medicines."

Consumers can go to http://www.realdanger.co.uk for more information and advice.

To read entire article visit: http://www.medicalnewstoday.com.

Law Enforcement Examiner: Operation CYBERx

In yet another fascinating article from Jim Kouri at the Law Enforcement Examiner, the September 23, 2009 issue spotlights a recent DEA-led investigation targeting the e-trafficking of drugs within the United States.

The investigation, which is part of a larger initiative named Operation CYBERx was conducted by the DEA and other law enforcement agencies. This collaboration targeted internet pharmaceutical drug traffickers, operating within the United States that pose as legitimate pharmacies which in fact are peddling dangerous narcotics and prescription drugs, many of which are counterfeit.

Here are some of the highlights from the article:

• Recognizing that criminals are facilitating more drug-related crimes through the use of 21st century technology, the DEA, along with their law enforcement counterparts recently arrested 18 people for allegedly selling pharmaceutical drugs illegally over the Internet. Those arrested include the ringleaders of more than 4,600 rogue Internet pharmacy websites.


• The alleged drug dealers who operated these rogue internet pharmacies received prescription orders for controlled substances over the Internet, which were then shipped to the doors of many US citizens — sometimes without any prescription needed. These alleged criminal pharmaceutical drug traffickers averaged more than $50,000 a day in profits from their illegal Internet based enterprise.


• Operation CYBERx is part of the DEA's "Virtual Enforcement Initiative (VEI)." This new DEA cyber initiative acknowledges that criminals in the drug trade are embracing the use of state-or-the-art technology to peddle their narcotics and dangerous drugs into US communities, all with an air of respectability.


• DEA Administrator Karen P. Tandy said, "Operation CYBERx puts out of business alleged cyber criminals who [are] selling powerful narcotics without legitimate prescriptions to anyone with a computer and cash. These high-tech drug dealers were fueling addictions by selling the very drugs intended to prevent and treat ailments — not inflict them. Just as important, this Operation makes more Americans aware that buying prescription drugs from these rogue websites is illegal and dangerous."


• The VEI concept was realized last April when DEA led Operation "Cyber Chase," which resulted in more than 20 arrests in eight US cities and four foreign countries; shutting down an organization that ran over 200 web sites illegally selling what were identified as pharmaceutical drugs. This year-long investigation targeted international Internet pharmaceutical traffickers operating in the United States, India, Asia, Europe and the Caribbean. These e-traffickers also distributed drugs world-wide using rogue Internet pharmacies.

XStream Systems endorses the efforts of the DEA in cracking down on the illegal trafficking of prescription drugs and narcotics. This effort highlights the vulnerabilities of the pharmaceutical supply chain in the 21st century and XStream encourages all members of the supply chain to utilize material screening to verify, authenticate and protect their inventories. XStream also encourages health care consumers to only buy prescriptions from licensed, known pharmacies within your area and always use health care professionals (physicians, pharmacists) when taking medications.

To read Mr. Kouri’s Law Enforcement Examiner article in full, follow the following link: http://www.examiner.com/examiner/x-2684-Law-Enforcement-Examiner~y2009m9d23-Health-care-crime-Combating-rogue-Internet-pharmacy-operations

To learn more about XStream Systems visit us at: http://www.xstreamsystems.net/.

Euractive.com: Commission Slammed Over Internet Medicines

According to Euractive.com:

The Minister responsible for steering the Counterfeit Medicines Directive through the European Parliament has lashed out at the EU executive for failing to include online sales in the scope of the proposal.

Adamos Adamou (GUE/NGL, Cyprus) described the Internet as a "Trojan horse" in the medicines supply chain that the Commission has left the Parliament to deal with.

He said there were a number of flaws in the proposed directive, including the failure to provide a definition of counterfeit medicines and the omission of excipients such as the capsules used to package active ingredients.

Adamou said he had drafted amendments which would extend the scope of the directive to include over-the-counter medicines and to harmonize safety features on medicine packaging.

"Today, there is no guarantee of buying safe medicines. Counterfeit medicines are a form of terrorism against human health. It doesn't matter whether a pill contains sugar or poison. If the safety is compromised, so is our health," he said.

To View entire piece, visit: www.euractiv.com.

Swine Flu Spam in your InBox

MacAfee has confirmed it! - Swine Flu Spam emails accounted for 2 – 3% of the global spam yesterday. We knew this was inevitable – especially since “Swine Flu” is the topic of discussion everywhere. Those internet pharmacies are trying to sell you their “Tamiflu” before the supply runs out. But buyers should beware!

Many of those spam emails direct the reader to online pharmacies. Readers are warned some of the sites were simply a ploy to scam credit card information out of buyers. Other sites are of questionable origin and may expose the consumers to dangerous counterfeit drugs.

Consumers should be aware that buying medications online from an unknown pharmacy puts their health at risk. Tamiflu is a prescription and needs to be prescribed by a doctor, any pharmacy attempting to sell the drug without a prescription is not thinking of your health and well being. Secondly, you should only buy medications from your local pharmacy or a mail order pharmacy that is tied to a brick and mortar pharmacy.

Wholesale suppliers should heighten their awareness and their security measures. We at XStream suggest adding molecular pharmaceutical authentication to your validation methods. It provides the confidence that both you and your consumers need that only top quality products cross through your doors!